Challenges faced by Businesses

ChallengesIndia has attained the status of fastest growing economy in the world. Implementation of GST from 1st July, 2017 is expected to lend further momentum to the growth trajectory. Despite several favorable factors, such as, low level of inflation, subdued global energy price scenario, strong fiscal consolidation of central government finances, low current account deficit, higher agricultural output, growing FDI, and higher wages in rural areas, certain sticky constraints arresting Indian growth story refuse to abate.

The most worrisome of these developments is the declining trend in gross saving and investment. The gross savings as percentage of GDP has fallen from 34.7 in 2011-12 to 29.8 in 2016-17. During the same period, gross investment has shrunk from 38.9 percent of GDP to 31.3 percent. These trends have significant implications for capacity of Indian economy to create fresh jobs in rural and urban India. They also create a wedge between the real and financial economy. Within this overall scenario, the decline in private sector investment is critical and needs strategic intervention. It has also severely affected the credit growth of banking sector, as corporate India refused to take investment calls and the growth of credit in the world’s fastest growing large economy was just 9.4% during 2016-17, a 53-year low.

The state of balance sheet of corporate sector, their declining bottom line and falling credit appetite have serious implications for the profitability of banks and (falling) prices of banking stocks. Put together, these developments shape the investment climate. Analyzing these developments, Financial Stability Report of RBI released on 30th June, 2017, concludes as follows:

“Weak investment demand, partly emanating from the twin balance sheet problem (a leveraged corporate sector alongside a stressed banking sector) is a major challenge. Retrenchment of credit by public sector banks is partly offset by NBFCs, mutual funds and the capital market but they cannot fully substitute for banks in a bankbased financial system like ours. Hence, steps to restore the health of the banks assume urgency.”

The concerted movement by the Government and RBI to fight black money, fake currency and terror financing, although laudable objectives, produce certain unintended consequences. Banks are still fighting with the adverse effects of demonetization on demand generation, credit delivery system, supply chain management, and logistics.

In addition to this, there are legitimate concerns about how markets would react, given uncertainties in the global economy, weaker exports, and the possibility of capital outflows.

India has experienced several highs and lows in the last year. Businesses faced several impediments in the form of excess capacity, regulatory and policy challenges, and rising corporate debts resulting in the slow growth.  Private sector firms are also facing several internal problems such as leadership issues, IT sector downsizing etc. Startups are functioning on weak business model.  On the other hand many other sectors– like Steel, Telecom, and Aviation are facing huge losses because of excess capacity, cut throat competition resulting in outright losses or low operating margins.

Government and RBI seem to be having different perspectives on various issues like interest rate, agricultural loan waivers and measures to stimulate demand and private investment. While Ministry of finance seems to be looking for a reduction in Bank Rate to stimulate investment, RBI is according higher priority to hold rate of interest for the present to contain inflationary expectations

 RBI Governor has opined that loan waivers engender moral hazard. A debt waiver solution to farmers only provides short-term relief generally not to distressed and small farmers but large farmers who have cornered disproportionate gains of green and white revolution.  It also leads to a bad credit culture, besides exerting pressure on state finances.

India now stands at a critical juncture and progress is required on many fronts. Many studies undertaken by international bodies have concluded that Indian economy is expected to emerge as one of the leading economies in the world and likely to become a $5 trillion economy by 2025. We have to marshal all possible resources and ignite the proverbial animal spirit of our entrepreneurial class to make it happen.

Prof S.C.Sharma, Director, IBS Gurgaon

The Annual Quiz of IBS Kolkata Coverage in T2 of Telegraph

q1From questions on Cars to questions on Technology, there was almost every topic covered for all the Quiz lovers out there in the Quiz which was organized by IBS KOLKATA that was held in Rotary Sadan on Friday.

There were 40 teams who were all excited to participate in the Quiz. The colleges who participated were Presidency University, Medical College,Jadavpur University, Loreto College,Indian Statistical Institute to name a few. The students showed such great enthusiasm that students poured in from outside Kolkata to participate too.This was the 8th year of the Quiz being conducted by IBS Kolkata for the Undergraduate Colleges. q2

The Quiz started with the prelims followed by many interesting rounds till the final round. The final round was a thrilling nail biting round. Techno India aced the Quiz and won the First Prize and were elated.The Team comprised of Debaswini Dey, Samanway Banerjee and Nirjhar Guha Thakurata. Indian Statistical Institute students Dipanjan Pal, Arnab Auddy and Rupam Bhattacharya grabbed the Second Prize followed by Presidency University students, Dibyayudh Das,Ritwik Ghosh and Arunabha Banerjee who came third.

As  Leonardo Da Vinci said, “The knowledge of all things is possible”  So keep Quizzing….

IBS Business School, Kolkata

CII Western Region Edge farm HR Case Study Writing Competition, 2015 – 2016

DSC_6678CII Western Region organized the first Edge farm HR Case writing competition in 2014- 2015.  This competition has been conceptualized to increase the range of cases available for teaching at B schools in the Indian business context.  The core team Edge farm is headed by Mrs. Rani Desai, Chief People Officer, Deloitte.  She is supported by Mr. Prashant Verma, Member Core team, Edge farm, Joint General Manager HR, ICICI Bank.  One entry from IBS Gurgaon reached the finals in 2015:  “Home to Hearth: A case for Women Entrepreneurship” authored by Dr. Shalini Khandelwal and Prof. Jean Saldanha.  It was presented at the finals in Mumbai in Feb 2015, by Dr. Shalini Khandelwal.  It was later published in the Corporate Citizen Magazine.

For the 2015 – 2016 competition, 2 cases from IBS Gurgaon reached the finals:

  1. “Yes to Human Capital Optimization and Engagement for Achieving Business Excellence” by Dr. Shalini Khandelwal and Dr. Reshmi Manna ( secondary data) and
  2. “Compostwali of the Daily Dump: A Catalyst for Transformation and Cultural Change” by Prof. Jean Saldanha and Ms. Hempriya Banga ( primary data) .

DSC_6687Both cases  were presented in Mumbai on Feb 26, 2016 for the final evaluation.  There were 5 cases under primary data and 5 under secondary data, presented at the event.  The esteemed jury was headed by Mrs. Usha Thorat, Retd Dy. Governor of the RBI.  Other members of the panel were Dr. Asha Bhandarkar, Dean and distinguished professor, IMI Delhi, Mr. M.S. Mani, Senior Partner, Deloitte, Dr. Gautam Sinha, Director, IIM Kashipur, Mr. K. Ramkumar, Executive Director, ICICI Bank, and Mr.  Bigyan P. Verma, Director, GNIMS Business School.  Other participating B Schools included IIM Trichy,  Symbiosis Institute of Business Management,  Bangalore, IIM Indore,   Kohinoor Business School and L.N. Welingkar Institute of Management.

The case “Compostwali of the Daily Dump: A catalyst for Transformation and Cultural Change”   authored by Prof. Jean Saldanha and IBS student Ms. Hempriya Banga won the first place under the primary data category.  CII has advised that they will be publishing this case in the Corporate Citizen magazine within a few months.  The case study is based on the business run by PBK Waste Solutions Pvt. Ltd, Bangalore, which drives the segregation of domestic waste and recycling it into compost.  The case has brought attention to the serious problem of garbage piling up in our cities, how we cannot afford to ignore it any longer and how the solution needs to be found at every level.  The manner in which the organization is run by the protagonist and the manner in which mindset change and transformation has been achieved in society were the focus of the case.

DSC_6774All case writers were questioned and given feedback by the jury.  The winning case was given inputs from Mr. Ramkumar on how it could also be positioned as an entrepreneurship case if it was modified slightly, with additional business data;Dr. Bhandarkar suggested that it could be rewritten in the Ivey format for greater acceptance and Dr.Verma suggested that large scale commercialization should be suggested. The author would like to highlight that, after presenting the case, Mrs. Usha Thorat, retd. Dy.Governor of the RBI has taken details regarding composting and indicated her intention to start the activity and the Director of IIM Kashipur has shown keen interest in incorporating the community waste solutions highlighted in the case, at IIM Kashipur.


Did you know that every minute over $300,000 is spent on online shopping, over 7000 photos are updated online and over 600 videos are updated on YouTube every day? The amount of data in our world is exploding and this is what we call as BIG DATA.

Big data is a buzzword, used to describe a massive volume of both structured and unstructured data. It is so large that it is difficult to process it using traditional database and software techniques. Mobile is everywhere – more people have a cell phone than running water and 25% of the world will be on a social network – that’s what created all of this big data. We go for shopping in a store, we purchase, do the billing and this also becomes a part of Big Data.

Datasets grow in size because they are increasingly being gathered by cheap and numerous information-sensing mobile devices, aerial (remote sensing), software logs, cameras, microphones, radio-frequency identification (RFID) readers, and wireless sensor networks. To extract meaningful value from big data, you need optimal processing power, analytics capabilities and skills.

What is the Impact of Big Data and how has it transformed businesses to be future ready?

Every day social media is abuzz with communication around brands. Thousands and thousands of likes are recorded, comments posted, tweets and retweets sent out, images clicked and shared on Instagram, posts curated and pinned on Pinterest, video shared, viewed, liked, and left midway, to name a few things that social media adds to the variety of big data. Big Data also lets ecommerce businesses create more personalized offers and communications. Big Data enables merchants to track each user’s behaviour and connect the dots to determine the most effective ways to convert one-time customers into repeat buyers.

Thus, insights from big data can enable all employers to make better decisions – deepening customer engagement, optimizing operations, preventing threats and fraud, and capitalizing on new sources of revenue. Big data analytics provides a deeper customer understanding which translates to a sustainable competitive advantage for the future. Big Data skills include natural language processing and text mining, and familiarity with Clojure, Scala, Python, Hadoop and Java; also useful are data mining skills with tools like R and Mathlab; finally, look for scripting and functional language skills with Erlang and new database development skills with such rarities as Cassandra and Couch DB.

To conclude, big data is simply large amount of data, which is getting generated at a fast pace in variety of situations. It is getting trendy due to rapid technology changes. The scope of being a Big Data analyst is high and currently, out of the employees required for Big Data analysis, only 1/3 are hired and working.

big dataContributed by : Anukriti Jain (Student of 2016 at IBS Gurgaon).

IBS GURGAON CONVOCATION – 2015: Welcome address by Prof S C Sharma, Director, IBS-Gurgaon

Here is the text of the welcome address delivered by Prof S C Sharma, Director, IBS-Gurgaon during the IBS GURGAON CONVOCATION – 2015.

Prof S C Sharma, Director, IBS Gurgaon

Honorable Chief Guest Dr Mangu Singh, Managing Director, Delhi Metro Rail Corporation, Guests  of Honour Mr Vaibhav  Srivastava, Chief Executive officer, Zerone Technologies and Mr Mridual Srivastva, Vice President, Human Resources, Hero financial corporation, our highly respected guest Wing Commander Mr R R Reddy, distinguished guests, learned members of faculty, dear graduating students and their accompanying parents and guardians, ladies and gentlemen,

It is indeed a matter of distinct privilege for me to extend a very warm welcome to our Chief Guest Dr Mangu Singh Managing Director, Delhi Metro to this convocation ceremony. Dr Mangu Singh is a well known personality and is a symbol of excellence and outstanding accomplishment in the field of urban infrastructure, particularly Rail Transport planning, developing innovative monitoring systems leading to setting up of new standards for program execution and management.

Dr Mangu Singh graduated in civil engineering from University of Roorkee (now IIT Roorkee) in 1979 . Thereafter, he got into the Indian Railways Services of Engineers (IRSE) in  1981 .

Dr Singh joined Delhi Metro Rail Corporation (DMRC) in 1997 in the capacity of Chief Engineer/Chief Project Manager and moved upwards to the positions of Executive Director, Director (Works) and has been Managing Director since December, 2012.

Dr Singh is also a recipient of various prestigious awards and honours like the National Award (Railway Week Award 1996) for his contribution in completing the Kolkata Metro Rail Project, distinguished Alumni Award – Global Meet IIT (Roorkee) 2007 etc.  and Engineer of the year award 2012 by IEI. Dr Singh has published/presented many technical papers in National and International Journals/Conferences etc.

We are deeply grateful to you, Sir, for finding time to be with us as Chief Guest for this august ceremony.

Our young graduating students have been keenly waiting to hear your journey in one of the most prestigious institutions in the country and how you have made a difference through the sheer grit of your personality and persuasive ways in getting the best out of people and material resources around you.

It is my pleasure to  extend a very special welcome to Wing Commander Mr Raghunath Reddy, Registrar IBS who has flown from Hyderabad to be a part of this celebration. Mr. Reddy has been rendering a very valuable and priceless service to IBS. The range and depth of his contribution to IBS during last fifteen years is beyond description. His invigorating leadership echoes in every sphere of this great institution and helps it in soaring higher and higher levels of all round success.

I extend a very welcome to our two distinguished guests of honor from industry Mr Vaibhav Srivastva and Mr Mridul Srivastva .

Mr Vaibhav Srivastva is an engineer and Masters in Business administration  and has around 15 years of standing in corporate world. He has been CEO of 5 companies in Qatar and Dubai under AL Sulaiman Holdings. He brings with him sound experience of sales, business development, product management and business planning.

Mr Mridul Srivastva , is currently heading  HR Department of Hero Financial Corporations He has 11 years of experience in several sectors  including hospitality , real e state  and NBFC. He has been extensively promoting the use of E-Learning and blended learning throughout the organization.

We extend a very warm welcome to our distinguished guests Dr S K Kaakran and Dr O P Gupta, former Director IBS Gurgaon .

We are also deeply appreciative of the presence of parents, guardians and friends of our graduating students. Many of you have made great efforts to join us today. Our most grateful welcome to everyday.

It is a matter of great honor for me to be a part of ICFAI Group and IBS family.

It would be contextually relevant to share briefly the journey and accomplishments of this great institution which has redefined the concept of management education in India and made perceptible impact on the life and career of thousands of students in the country through a vast pan- India network of 11 universities and 9 IBS Campuses located at Ahmadabad, Bangalore, Dehradun, Gurgaon,Hyderabad, Jaipur,  Kolkata, Mumbai and Pune.

The IBS campuses offer two year, full-time Postgraduate Program in Management and continuously endeavor to meet the changing needs of corporate and businesses.

Since its inception, IBS has been consistently ranked among the top Business Schools of India providing excellent academic delivery and transforming the students into leaders for the future.

IBS Gurgaon pass-outs have been in ever increasing demand and very many of them  are holding senior positions in large number of companies and business organizations covering almost all major sectors of economy including IT, Banking and insurance, Analytics and consultancy, credit rating, digital marketing and marketing research, micro finance, etc.

I congratulate the dear graduating students and their proud parents. It is a great day, one we have been planning and waiting for. It is gratifying to look at all the familiar faces of class of 2015.

My dear students, in many parts of the globe convocation ceremony is called commencement. It is a unique moment to look through the memory lane of the years gone by and also to look ahead at your dreams.

The great Chinese philosopher Confucius once said,” By three methods we learn wisdom: first by reflection, which is noblest; second by imitation, which is easiest; and third by experience, which is bitterest.

I have also contemplated on my life and career and felt that a few thoughts might be of some relevance.

Firstly, Graduation is not the end of learning. In fact, your onward journey is bound to provide ample situations necessitating validation of the utility of past learning in grappling with the problems encountered in daily life, both at work and beyond. In the light of your experience you have to initiate the process of unlearning and relearning.

It must be appreciated that all forms of education and knowledge is aimed at making life more meaningful and productive. We have made all possible efforts to share with you knowledge and skills and trained you in the art of knowing the unknown and dealing with it deftly.

Secondly, in the coming years and decades many things will change. You may switch over to a new company with a different profile. Your superiors may be professionals with markedly different skill set with wide variety expectations from you.

The nature of challenges in the market place may undergo huge transformation swinging from buyers’ market to sellers’ market, from domestic market to global market, from boom to burst and so on.. In this ever changing scenario characterized by hope and despair, a few things will always be helpful.

The keen desire to add value by being an effective team player, a leader, a researcher ,an analyst- all rolled in to one with an infinite capacity to adjust, negotiate, reconcile and innovate  are some of the attributes of successful professionals .  You must strive to remain relevant in all situations.

These qualities will endear you to all people you would come across in your long and versatile career.  My dear students please appreciate that every change presents opportunities. Develop the third eye of wisdom which would enable you to discern opportunities in every challenge.

I am sure our Chief Guest would touch upon this subject during his Convocation Address.

I wish the graduating students all the very best in all their endeavors. You would be our ambassadors for all times to come.

Today you also graduate from being a student to becoming alumni. We value our alumni as much as our students. We would be very happy if you continue to be in touch with us. Many of our alumni visit their Alma meter as guest speakers; share their experience and success stories. They become a highly credible and perennial source of inspiration for the students.

I once again extend a very warm welcome to our Chief Guest, Guests of honor and all those who are a part of this great ceremony.